Question

Explain the impact of new economic policy on balance of payment

Answer 1

our country has allways been a trade deficit country. As a result of new economic policy the net invisibles share of the current account has been increasingteadily which results in comparitively a better current account deficit (i.e current account deficit is reduced considerably). Similarly the net balance of FDI inflows, FIIs etc.. the deficit in current account has been almost overcome by the surplus inwhich resulted in a steady accumulation of foreign exchange reserves. At present our F E reserves are at US$301 billions. It shows the new economic policy on our country's balance of payments.